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AIFM Sustainability Risks Delegated Regulation In force Unlisted

Overview

Jurisdiction
European Union
Topic
-
Instrument type
Delegated Act
Reference number
2021/1255
Valid from
2022-08-01
Valid to
2026-08-13
Modified date
2021-04-21
Listed at
Unlisted draft
Withdrawn at
-
Description
Amends Delegated Regulation (EU) No 231/2013 to require alternative investment fund managers (AIFMs) to integrate sustainability risks and sustainability factors into risk management, organisational arrangements, conflicts-of-interest management and internal controls.

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Sources

Source URL Crawler Publish date
https://publications.europa.eu/resource/celex/32021R1255 EUR-Lex Crawl 2021-04-21

Logs

Type Status Started at Finished at
No jobs yet.

Rule sets

Label Effective
Companies carrying out AIFM activities 2022-08-01 — 9999-12-31
Applies from milestone:
Application Start (2022-08-01)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “alternative investment fund management (AIFM)”

Questions this regulation asks

Attributes only this regulation asks about — criteria no general attribute expresses. A company answers each once.

This regulation asks no questions of its own — every condition uses a general attribute.

Obligations

Title Kind Rule set
Consideration of sustainability risks Due Diligence -
Description:
Take sustainability risks into account when complying with the requirements applicable to the AIFM’s activities and procedures.
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Alternative investment fund managers (AIFMs)
Checking responsibility:
AIFM
Check method:
Review whether sustainability risks are taken into account when complying with the requirements.
Rule set:
-
Source reference:
Article 1(2), Article 18(5)
Source excerpt:
AIFMs shall take into account sustainability risks when complying with the requirements set out in paragraphs 1 to 3.
Consideration of principal adverse impacts Due Diligence -
Description:
Take principal adverse impacts of investment decisions on sustainability factors into account when complying with the relevant requirements.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Alternative investment fund managers that consider or are required to consider principal adverse impacts of investment decisions on sustainability factors
Checking responsibility:
AIFM
Check method:
Review whether principal adverse impacts are taken into account when complying with the requirements.
Rule set:
-
Source reference:
Article 1(2), Article 18(6)
Source excerpt:
Where AIFMs consider principal adverse impacts of investment decisions on sustainability factors as described in Article 4(1), point (a) of Article 4 of Regulation (EU) 2019/2088, or as required by paragraphs 3 or 4 of Article 4 of that Regulation, those AIFMs shall take into account such principal adverse impacts when complying with the requirements set out in paragraphs 1 to 3 of this Article.
Resources and expertise Governance -
Description:
Retain the necessary resources and expertise for the effective integration of sustainability risks.
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Alternative investment fund managers
Checking responsibility:
AIFM
Check method:
Review whether the necessary resources and expertise for the effective integration of sustainability risks are maintained.
Rule set:
-
Source reference:
Article 1(3), Article 22(3)
Source excerpt:
For the purposes of paragraph 1, AIFMs shall retain the necessary resources and expertise for the effective integration of sustainability risks.
Conflicts of interest related to sustainability risks Governance -
Description:
When identifying conflicts of interest, include conflicts that may arise from integrating sustainability risks into processes, systems and internal controls.
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Alternative investment fund managers
Checking responsibility:
AIFM
Check method:
Review the procedures, systems and internal controls used to identify conflicts of interest.
Rule set:
-
Source reference:
Article 1(4), Article 30
Source excerpt:
AIFMs shall ensure that when identifying the types of conflicts of interest, the existence of which may damage the interests of an AIF, they shall include those types of conflicts of interest that may arise as a result of the integration of sustainability risks in their processes, systems and internal controls.
Assessment of risk exposure Due Diligence -
Description:
Include in the risk management policy procedures enabling the AIFM to assess, for each managed AIF, exposure to market, liquidity, sustainability, counterparty and other relevant material risks.
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Alternative investment funds managed by an AIFM
Checking responsibility:
AIFM
Check method:
Review whether the risk management policy includes procedures for assessing each managed AIF’s exposure to the specified risks.
Rule set:
-
Source reference:
Article 1(5), Article 40(2)
Source excerpt:
The risk management policy shall comprise such procedures as are necessary to enable the AIFM to assess for each AIF it manages the exposure of that AIF to market, liquidity, sustainability and counterparty risks, and the exposure of the AIF to all other relevant risks, including operational risks, which may be material for each AIF it manages.
Sustainability risks under Article 57 requirements Due Diligence -
Description:
Take sustainability risks into account when complying with the requirements laid down in Article 57(1).
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Alternative investment fund managers
Checking responsibility:
AIFM
Check method:
Review whether sustainability risks are taken into account when complying with the requirements.
Rule set:
-
Source reference:
Article 1(6), Article 57(1)
Source excerpt:
AIFMs shall take into account sustainability risks when complying with the requirements laid down in the first subparagraph.
Responsibility for integrating sustainability risks Governance -
Description:
Ensure that responsibility for the integration of sustainability risks in the specified activities is assigned to a responsible person.
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Alternative investment fund managers
Checking responsibility:
A person or function designated by the AIFM
Check method:
Review the allocation of responsibility for integrating sustainability risks into the relevant activities.
Rule set:
-
Source reference:
Article 1(7), Article 60(2)(i)
Source excerpt:
is responsible for the integration of sustainability risks in activities referred to in points (a) to (h).

Measures

No measures.

Penalties

No penalties.

Milestones

Date Type Description
2001-01-01 Entry into Force Entry into force on the twentieth day following publication in the Official Journal of the European Union.
Source reference:
Article 2
Source excerpt:
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
2022-08-01 Application Start Application of the Regulation begins.
Source reference:
Article 2
Source excerpt:
It shall apply from 1 August 2022.

Linked regulations

Type Regulation
Amends Delegated Regulation (EU) No 231/2013
Cites Sustainable Finance Disclosure Regulation
Cites Directive 2011/61/EU of the European Parliament and of the Council
Cites Directive 2003/41/EC
Cites Directive 2009/65/EC
Cites Regulation (EC) No 1060/2009
Cites Regulation (EU) No 1095/2010